On Tuesday, Apr. 6, the United Kingdom established a new body to monitor allegations of anti-competitive behavior among the world's largest technology firms.
In addition to the various regulators already in place, there are also a number of observers who examine how technology giants utilize their market power.
U.K Watchdog targets big companies
According to the WSJ, officials in the United Kingdom have launched an independent regulatory body meant to review allegations of competitors' anticompetitive behavior, adding yet another agency to the growing list of watchdogs scrutinizing how technical giants utilize their market strength.
The new Digital Markets Unit will be tasked with making sure that markets are not monopolized by the likes of Facebook Inc. and Alphabet Inc.'s Google to the detriment of competition, officials in the U.K. said.
The new unit was announced last year but was launched with limited capabilities on Tuesday.
The online world offers many benefits to both the business community as well as the society as a whole. Online platforms make work more accessible and more efficient. They also enable people to stay in touch.
However, experts tend to agree that the concentration of power in a few firms restrains growth and has detrimental effects on consumers and businesses that rely on them.
According to The Guardian, Parliament must approve legislation governing the Commission's oversight and enforcement powers before imposing fines. This legal framework should be in place by the end of next year.
Meanwhile, the agency is building its personnel and developing a legally binding code of conduct for businesses once the legislation is passed.
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Why the U.K wants to watch these companies
The government has published a document outlining a new unit's function and role during its first year of operations.
It entails collaboration with businesses, government agencies, and academic institutions to collect the required evidence, knowledge, and expertise. Once the new competition-friendly regulatory system is in place, it can be implemented as soon as possible.
As nations around the world wrestle with these issues, the unit will coordinate with other international institutions. This way, the UK will remain at the forefront of this debate.
The United Kingdom already discusses its approach to digital competition with international partners within bilateral engagement and as part of its G7 presidency.
In April, the Secretary for Digital and Technology will host a meeting among digital and technology ministers. He seeks to build consensus to improve information sharing and connect regulatory and policy approaches.
The Digital Markets Unit will work closely with regulatory authorities such as the Office of Communications Regulation (Ofcom) and the Financial Conduct Authority (FCA). The new regime provides comprehensive safeguards to consumers and businesses and is coherent and persuasive.
The system is currently in place, but one of its limitations prevents the watchdog from enforcing the law against companies until the watchdog has been established.
This article is owned by Tech Times
Written by Lionell Moore
